Bogota Financial Corp. Reports Results for the Three and Six Months Ended June 30, 2025

Core Insights - Bogota Financial Corp. reported a net income of $224,000 for Q2 2025, a significant turnaround from a net loss of $432,000 in Q2 2024, marking a 151.9% increase [1][4] - For the first half of 2025, net income reached $955,000, compared to a net loss of $873,000 in the same period last year, driven by a one-time death benefit of approximately $543,000 [1][17] - The company aims to grow its commercial portfolio while managing risks and is focused on increasing consumer and commercial deposits to lower funding costs [3] Financial Performance - Net interest income increased by $951,000, or 34.7%, to $3.7 million for Q2 2025, reflecting a 48 basis point increase in the net interest rate spread [12] - Interest income for Q2 2025 was $10.5 million, a slight increase of $31,000, or 0.3%, compared to Q2 2024 [5] - Total assets decreased by $49.7 million, or 5.1%, to $921.8 million as of June 30, 2025, primarily due to a reduction in cash and cash equivalents and loans [31] Loan and Deposit Trends - Net loans decreased by $18.5 million, or 2.6%, to $693.2 million, attributed to declines in residential mortgages and construction loans [31] - Total deposits decreased by $14.0 million, or 2.2%, to $628.2 million, with notable declines in certificates of deposit and NOW accounts [33][34] - Delinquent loans increased to $20.4 million, or 2.94% of total loans, primarily due to one commercial real estate loan [32] Non-Interest Income and Expenses - Non-interest income rose by $29,000, or 9.4%, to $332,000 for Q2 2025, driven by increases in bank-owned life insurance income and fees [14] - Non-interest expenses increased by $129,000, or 3.5%, primarily due to higher professional fees and occupancy costs [15] - The efficiency ratio improved to 95.73% for Q2 2025, down from 122.28% in Q2 2024, indicating better cost management [46] Balance Sheet Highlights - Total liabilities decreased by $50.8 million, or 6.1%, to $783.4 million, mainly due to a reduction in deposits and borrowings [33] - Stockholders' equity increased by $1.2 million to $138.4 million, supported by the net income for the period [35] - The company's ratio of average stockholders' equity to total assets improved to 14.96% from 13.99% at the end of 2024 [35]